Telkom CEO eyes Cell C

14 August 2015 - 02:04 By Reuters, RDM News Wire

Telkom views Cell C as an "interesting proposition" as the fixed-line operator looks for acquisitions to bolster its cellular network business. A controlling stake in Cell C, South Africa's third-largest cellphone network operator, is up for grabs after Saudi Arabia's Oger Telecom appointed Goldman Sachs to evaluate bids for its 75% holding."Cell C is an interesting proposition. I would like to do something with them," Telkom CEO Sipho Maseko said yesterday. "At the right price, I'm a buyer."He did not say whether he had held any talks on a possible offer.Buying Cell C would give Telkom about 20-million cellphone users but also a company facing a consumer backlash due to slow network speeds.Telkom is near the end of the first phase of its turnaround strategy that included job cuts, outsourcing services such as telephone directory printing and selling some properties in a portfolio whose size Maseko described as slightly larger than Luxembourg."At the heart of the next chapter of our turnaround strategy is growing profitably, because we've disappointed our shareholders in the past with deals that never delivered," he said.The National Consumer Commission is instituting a "full scale investigation" into Vodacom and Cell C regarding call and data tariff increases affecting consumers with contracts and those who had entered into fixed-term agreements. ..

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